Philippine SEC Chief Clarifies Binance Ban Timeline; Urges Investors to Stick to Registered Entities
Summary:
Kelvin Lee, the head of the Philippine Securities and Exchange Commission, has indicated that the ban on Binance, due to operating without a license, would take effect three months after its initial advisory. This clarification comes amid online confusion about the ban's timeline. The ban also extends to other cryptocurrency exchanges like OctaFX and MiTrade that have recently been issued advisories for unregistered operations. Lee encouraged local investors to deal with regulated entities and emphasized the importance of customer protection.
Kelvin Lee, the chief of the Securities and Exchange Commission in the Philippines, cleared the air at a meeting held on 13th December concerning the forthcoming restriction on Binance. As reported by local news outlet BitPinas, he stated that the prohibition would come into action three months after the issuing of relevant notifications. This was owing to mounting confusion online about the restriction timeline after the advisory issued on the 28th of November instructed Binance to halt operations for lacking a legitimate license. Lee mentioned that the restrictions were expected to be levied "three months from the date of issuance," which he clarified was on the 29th of November. He commented, "We could potentially extend it depending on the response we get, but presently, we are satisfied with the three-month period." He revealed that the initial proposal was for a one-month or even one-week transition phase, but the timeline was extended due to the incoming Christmas season to avoid inconveniencing Filipino investors. Lee also revealed that other exchanges, OctaFX, and MiTrade, which had recently been served with advisories for unlicensed operations, also risked facing similar restrictions after a three-month period. Philippine's SEC maintained a substantial catalog of such unregistered exchanges and planned a phased exposure of these entities. The agency also proposed a patient strategy, intending to observe if these exchanges would seek registration following the action against Binance. It was reported that Lee faced criticism over the Binance restriction given its lower rates compared to other legal exchanges. Justifying the action, Lee claimed, "Obviously they'd be cheaper as they have never troubled to register with the authorities in the Philippines nor comply with related requirements." He warned potential investors to put their money in registered businesses, highlighting the existence of 17 registered virtual asset service providers (VASPs) offering fiat-to-crypto services in the country. He ended his speech saying, "At the end of the day, the key issue is about customer protection and regulation adherence. It is always safe to deal with registered entities." Binance is yet to comment on this development and its implications for their operations in the Philippines.
(Note: This article ends with a reference to a separate news piece)
Published At
12/14/2023 12:52:46 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.